The government has a “moral obligation” to reverse the decision to freeze the threshold at which student loans are repaid, the Treasury Committee has argued.
When Plan 2 student loans were first announced in 2010, the government said the £21,000 earnings threshold would be uprated annually in line with earnings from 2016. However, the threshold was then frozen from 2016 to 2018 and again from 2021 to 2025. In the 2025 Budget, chancellor Rachel Reeves announced it would be frozen again from 2027 for three years. In a new report, MPs on the Treasury Committee conclude that governments have taken the "politically convenient option" of loading burdens on to younger generations, hoping that they will not notice until future years. The commit...
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